Thank you all, I decided to take uber to airport and will tow car back to mechanic once I am back. Will keep you updated

The engine light could be the cat on its way out , one way to avoid costly repair is to put an extension on where the lambda sensor fits, this fools the sensor as it’s not giving  the right reading to the ecu.  Had the same issue on a seat arosa, asked my local vw specialist who is passionate about his work and he said yours sounds the same . Extension pipe is available on eBay , check whether or not you need a straight one or an angled one ( due to restricted space when re fitting the lambda sensor.). I hope you have already called the current fault into the stealer who did the chain.

good luck 

Ok last update:

They assured me that my latest issues were not related to their timing chain replacement,
They detected that my previous mechanic put non-genuine spark plugs and cables around it  and ignition coil was damaged, so they replaced all of the above + I said ok to replacing Lambda oxygen sensor as a possible fix for my initial engine light. 

I paid crazy amount of money in the end, but I must say that my car runs smoothly now, maybe I am over thinking it but I think it runs even smoother now then before especially DSG changing gears is smoother now, it used to jerk there sometimes especially between 3rd and 4th gear. 

So overall, even though I paid a lot (€1,700 in the end with additional wheel alignmenets and some other small odd jobs) but I am happy that I have all the genuine VW parts now and my car runs smoothly

Any idea what brand and type the non genuine plugs fitted were?

 

OE Genuine are NGK laser iridium NGK IZFR6P7 (97153) 

9 minutes ago, xman said:

Any idea what brand and type the non genuine plugs fitted were?

 

OE Genuine are NGK laser iridium NGK IZFR6P7 (97153) 

No idea, I am really clueless to be honest, and it is possible I've been ripped off here and there in this process because of my cluelessness. But eh, I am happy it's all over now. I also have language barrier here in Portugal, as I don't speak Portuguese and mechanics usually speak none or broken English

Sooo

The story did not end there! After 2 weeks I got engine warning light again, and again strange rattles etc.

So I took it back to VW mechanic and diagnostic showed them same error but they knew they changed and fixed everything that they could so they continued debugging further and finally found the issue - leaking fuel pump. And additional €680!

I spent almost €2500 on it in last month :(

So much of the other stuff was done with no need; some money back would be good?

With modern engine management and fault recording systems we should be past the time of replacing bits randomly until they find the fault?

1 hour ago, kenfowler3966 said:

So much of the other stuff was done with no need; some money back would be good?

With modern engine management and fault recording systems we should be past the time of replacing bits randomly until they find the fault?

 

I know.. although with timing chain I insisted to do the change and with lambda sensor they warned me that it might not fix the issue.

 

And yes totally agree that diagnostic could be much better with all the modern electronics, although this one is from 2010 so maybe that's the case

Not sure how diagnostics could pick up a leak per se - although the mark one human eyeball can be good at spotting stuff like that.  Surprised it didn't show up as a low pressure fault somewhere in the fuel system, though.